Pelco New Layoffs But CEO Focused On Growth

By John Honovich, Published Jun 08, 2016, 02:57pm EDT

Pelco has laid off 43 workers, raising more fears about further decline of the company.

However, IPVM has spoken with Pelco's CEO and he says they are firmly focused on growth and that this is part of their plan to improve their overall competitive positioning.

In this note, we review Pelco's CEO plans and examine Pelco's future.

Layoffs **********

***** *** *** ***** 1,000 *********, ********* *** 43 ***** **** *** here, ** ** ***** were **** *** ***** office, * **** *** factory *** ** ********.

***** *** *** ******** layoffs **** *** **** decade, ***** **** ****** **** **** **** the ***** ****** ********* ** **** from *****'* **** ** 2,000+ *********.

Long **** *******

***** ** ** ******** Pelco *** *********** **** term *******. ***** *** admitted **. *** *** numbers *** ***** ** 50% ***** ******* **** a ****** ***, ********** to *** ******* ****** which ** ****** ** 100%.

Recent ******

*******, *****'* *** **** both ******* *** ************* is ** ** *** this **** *** **** is ******* * **********.

*** *** *** ***** mentioned **** ********* ********** and ********* **********.

Strategic **********

*****'* *** **** ** is ******** ** '**** technologies' *** ********, ******** away **** ****** ****.

** *** ****** ****, Pelco ** ******** ** VMS *********** (**************), ****** ******* *** firmware. **** *** ******** resources **** ****** ******** like ******* ****** *** Endura.

** *** *********** ****, Pelco ** ********* **** in ******** *** **** in ********** *** ********** engineering, ***** **** *** partnering / *********** **** of. 

Efficiency *****

** **** ** *** conversations **** *****'* ***, he *** ********** *** importance ** **********. *** Pelco **** ********* **** to **** ** **** less. ***** *** ** plans *** ****** **** year ***, ** *** as **** ****, *****'* CEO **** **** *** hire **** ****.

Not *** ****

******* ***** ***** ******** that **** *** ***** made ** ******* * company's ***** **** ******* for ****.

*******, *****'* *** ************* said **** **** ** not *** ****, **** Pelco ** *** *** sale *** ***** ** no **** *** ***** to ** ****. ** are ********* ********* ***** such ****** *** **** for ********* ** ** crafted ******** ** ***** questions. ** *** ***, which ***** ** ** either ******* *** ***** or ** *********** *****. Our *** **** ** that **** ** ********* part ** *** ****-****** plan, ****** **** **** not **** ** **** work.

Just ***** ** *** ***?

***** ** ** ****** that ***** ***** ** develop ****** *** ******** (specifically ********* ***** ********** new **********) *** ******* their ** ****** *********. Will ***** **** **** to *** ********* **** being **** ******* *** driven ** *** **** done ** **** ** push **** *** ** overwhelm ****? **** **** tell.

****

Comments (7)

It's hard to gauge this. We at an all Pelco facility and are a bit nervous about all the changes. We work closely with product support and engineering. It will be tough on us if the support starts to decline. We are technically in Pelco's back yard and love the convenience of having them so close. They have been so good to us!! Hope it keeps going!!

Honestly, Pelco have to change, and the roumors it will be sold are in the background since SE bought it. Focusing on roumors like this, and trying to find a proof in every move for that theory not really helps understanding the background, but helps the conspiracy :)

I worked there for 4 years, and I still believe it is going on the right direction. Cameras were never as good as nowdays on video IQ, and videoxpert can give a stabile background if they manage this well.

Will they say or is there a way to know how much revenue is being directed to R&D relative to other companies in the industry? What kind of people are on their development and innovation teams? To me with the still large number of players in this field, and the fact the industry overall needing to catch up with IT technologies, means there is a lot of room for competition to pull ahead of others, provided they invest wisely in their innovation. Meaning investing wisely and enough to effectively develop a marketable differentiator, without overspending on it and not developing something "neat" but has little real world value. I don't think they will get far if the vision is to just be another manufacture of video surveillance products that they claim are better than anyone elses.

Will they say or is there a way to know how much revenue is being directed to R&D relative to other companies in the industry?

Pelco's CEO cited 12%. It's hard to know though how that compares since companies can have some leeway in how they segment.

That said, Pelco definitively has real engineering / development, though somewhat less than last week.

What kind of people are on their development and innovation teams?

That's a hard question to answer for any manufacturer. It's like saying what kind of people are on the Axis development team? Clearly Axis has got many strong people in R&D but they are rarely publicly or externally acknowledged.

That said, I do think Pelco has some strong development / engineering talent. Pelco's CEO says releases have increased notably since he started and that he is prioritizes that. How it executes amongst these changes remains to be seen.

I heard today that Pelco reached out to one of the manufacturer reps after cutting them about 2 1/2 years ago and was looking to bring them back on. I don't know if this was a regional thing or across the board.

1, I don't know about the manufacturer rep situation.

For background, for members, most of the rep firms were fired in 2014 before this new CEO came.

Now, there is a new VP of Sales so he might take a different approach. Also, the CEO might see rep firms as being more efficient / lower cost than hiring more internal sales people.

Again, I don't know but given those changes, it sounds like something that could reasonably happen.

Refocusing on VMS and One VMS (VideoXpert) will be a keep part of the recovery. If these employees supported products not part of the strategic future, it sounds like a good move by the aggressive new CEO.

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